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Google and Yahoo

In: Business and Management

Submitted By katiecw17
Words 1241
Pages 5
The Ties Between Two Search Engines
Katie Trevino

Now that we have looked at the financial ratios of both companies we will take a look into the history of Google and Yahoo we will see where the two companies became the top search engines. We will also see where the two companies are very similar and where they are complete opposites. Both companies will stand out in two different ways. The report will show a company that shows potential growth, while the other shows issues and different path for their business. In the history aspect of our decision, we want to remind you that it may be completely different from what is found in the financial analysis. The background information on what is happening behind closed doors may be very useful.
The beginning of Google started in 1995 with Sergey Brin, 21, giving Larry Page, 22, a tour of the Michigan University campus. A year later BackRub was started as a search engine running on Stanford servers but shortly became over powering. In 1997, BackRub was changed to Google. Brin and Page wanted to name their company that would be based off the word “Googol”. Googol is a mathematical term for the number represented by the numeral 1 followed by 100 zeros. (Google) This was their motto word to show their goal of having on going information available on the web. Google became a company on September 27, 1998 shortly after receiving a $100,000 check from Andy Bechtolsheim. (Google) Brin and Page used this money to hire their first employee and build what is known today has the most popular search engine. Google planned to expand their company providing better services. On June 7, 1999 they received $25 million of equity from Sequoia Capital and Kleiner Perkins Caufield & Byers. Several members of these companies were admitted into the board of directors however, Michael Moritz was also a director for Yahoo and several other companies. Sequoia Capital is a large corporation that finances the start-up of companies. Apple Computers, Yahoo, Linear Technology and Electronic Arts are only a few to name.
Since the creation of Google the company has evolved immensely from Gmail to grants all the way to Picasso. Their success has not gone unnoticed. In 2007 they were named by Forbes the number one “Best Companies to Work For” and have been in the running for several years. (xx) They have expanded their business by buying YouTube, a website where users can watch free videos. In the last ten years Google has become more than just a search engine. They have reached out to improve the lives of their customers. They have made things more accessible to their users and more user friendly with little upgrades such as Google Chrome. Their improvements even included the android system and Google Maps for mobile phones. One of Google’s biggest technology advances stretches out to the automobile world. Google has driven automatic cars without a driver using video cameras, radar sensors and a laser range. This project may not be seen in vehicles for a while because Google is ensuring that every safety aspect is met. However, Google has had great success and has logged over 140,000 miles around the California areas in multiple terrains. (Google Corp.) Google continues to strive for more making great success stories.
Yahoo was started by two graduates of Stanford University in 1995. Jerry Yang and David Filo created “Jerry’s Guide to the World Wide Web”. (xx) Jerry’s Guide to the World Wide Web soared through the ceiling with one million hits after one short year online. They made their company officially available on April 12, 1996 bringing in over 2.6 million dollars in revenue, all while changing their name to Yahoo. (Casmer)
The first change made to Yahoo was MyYahoo allowing a more personal search web page. In 2001 Yahoo decreased by $10 billion before Mr. Koogle resigned. As a company that profits off advertisement they add yahoo maps, phone books and chat rooms to bring in bloggers and journalist. In 2003 Yahoo teams with ACNielsen to show society the future of online ads that reel in sales of goods. The following year Yahoo takes it one step further by adding “behavioral targeting” with this upgrade Yahoo published ads based on the consumers previous searched topics. (WSJ) In 2010 Yahoo hits a high with $1 billion in profits from websites that consumers visit. However both Microsoft algorithmic and Yahoo ad sales show no growth putting a stop in 2011 for the company and leaving 2012 with plans to cut 2,000 jobs. Despite the lows Yahoo bought Tumblr for $1.1 billion. Tumblr is a company that has produced no profit or revenue. Throughout the years of Yahoo they have seen many changes in the head of the company. At the beginning of this year Yahoo released Chief Operating Officer Henrique de Castro, because there was no change in advertising growth. Mr. Castro was said to leave with a severance package of $42 million. Does Yahoo have control of their company? Are they just buying websites and other companies that are not earning any income? In the mid 2000’s Yahoo branches out further buying more companies such as HotJobs, MusicMatch and Overture Services. Several years after Google applies the Android system to phones, Yahoo teams up with Verizon wireless to provide a new portal to their customers. After the review of both companies we see that the two are very different in their soul goals of a search engine. Google has expanded their company beyond their search engines. They have invented a mobile operating system and drove cars without a driver. Google is stretching their wings throughout the growing technology society. Yahoo has continued their company goals of selling ads and putting information at consumer’s finger tips. Both companies have completed opposite goals for obtaining a successful business. However, Yahoo is showing a trend of failure of leadership within the company. We have to take a step back and look at the issues that seem to be an ongoing issue with in Yahoo. Are they going to make any profit with the companies that they are buying? Many reports show that Yahoo is buying companies and not making any profit. Google has not shown a lot of unsuccessful stories. They have shaped their company around the changing society.
If we had to choose a company today to invest in I would recommend Google. They have a successful story with a bright future ahead of them. They continue to set goals and find what they need to improve. If we look back at their financial statements we see they have grown since they have started.

References:
Casmer, Jeff. Yahoo: A Brief History of Yahoo! What You Need to Know. [ONLINE] Available at: Yahoo: A Brief History of Yahoo! What You Need to Know. [Last Accessed January 29, 2014]. http://www.ignitepoint.com/?Yahoo_A_Brief_History_of_Yahoo__What_You_Need_to_Know&articleid=206339&from=PROFILE Google Corporation (2010). What we're driving at. [ONLINE] Available at: http://googleblog.blogspot.com/2010/10/what-were-driving-at.html. [Last Accessed 01/31/2014].
Google Turns 14, Was Initially Called ‘BackRub’.TIME.com. [ONLINE] Available at http://techland.time.com/2012/09/27/google-turns-14-today-was-initially-called-backrub/#ixzz2rqpOJMMy WSJ. Yahoo: A Changing Internet Pioneer. [ONLINE] Available at:http://online.wsj.com/news/articles/SB10001424052970203513604577140950546379684. [Last Accessed 02/01/2014].…...

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